Homework question help needed

Jul 2nd, 2015

Sigchi4life

Category:

Business & Finance

Price: $5 USD

Question description

A car company coupon bond has a coupon rate of 6.5% and pays annual
coupons. The next coupon is due tomorrow and the bond matures 26 yrs. From
tomorrow. The yield on the bond issue is 6%. At what price should this bond
trade today, assuming a face value of $1,000? The price of the bond today
should be? (Round to nearest cent)